Yes, that's a perfectly fine usage of the word.
I have a memory from a boring several-hours car trip in my mid-teens where me and my brother spent some two hours beatboxing in the backseat until my mother turned around for the umpteenth time and shouted "DET RÄCKER!" at us. So, well, yeah. It works that way.
On its own as an intransitive verb, yes. It can also mean to reach something in the construction "räcka upp till", as in "Räcker du upp till hyllan?" ("Can you reach the shelf?"). Think of it as "Are you (tall) enough to reach the shelf" and it makes sense. As a transitive verb it means to hand or pass someone something, often something the person can't reach on their own. "Räck mig saltet." "Hand/Pass me the salt."